Is there a way in QuickBook to separate and track the intent of funds vs the location of funds?
This is a bit of a contrived example, but say I have $1,000 cash that's earmarked for a specific purpose, say buying widgets. I have an "Other Current Assets" account called "Cash for Widgets" and it has a balance of $1,000.
Now say I deposit the $1,000 cash into a bank account with an initial balance of $5,000. I can make a journal entry that shows movement of the funds from the cash account to the bank account. When I do that the balance of the cash account goes to $0, and the balance of the bank account goes to $6,000.
So far so good, but now I've lost the *intent* of the "Cash for Widgets" account, which was to spend $1,000 on widgets. The location of the funds is still known as it's in the bank account, but I can't tell by looking at the balance of the "Cash for Widgets" account whether the money just moved somewhere or if it was spent on widgets, and I can't tell from the balance of the bank account (now $6,000) that there is money in it for widgets.
Is there some way in QuickBooks to track that even though the money moved from the cash account to the bank account there is still $1,000 available to be spent on widgets? If so, how would one then use it to record future purchases of widgets (whether from the cash account or from the bank account)?
Thank you!
